%T Job recruitment networks and migration to cities in India
%A Iversen, Vegard%A Sen, Kunal%A Verschoor, Arjan%A Dubey, Amaresh%J Journal of Development Studies%N 4%P 522-543%V 45%D 2009%K employment and law; South Asia; social capital; social issues; economics%= 2010-09-17T10:28:00Z%~ http://www.peerproject.eu/%> http://nbn-resolving.de/urn:nbn:de:0168-ssoar-134718%X Economists have focused on job search and supply-side explanations for network effects in labour transactions. We develop and tests an alternative explanation for the high prevalence of network-based labour market entry in developing countries. In our theoretical framework, employers use employee networks as screening and incentive mechanisms to improve the quality of recruitment. Our framework suggests a negative relationship between network use and the skill intensity of jobs, a positive association between economic activity and network use and a negative relationship between network use and pro-labour legislation. Social identity effects are expected to intensify compared to information-sharing and other network mechanisms. Using data from an all-India Employment Survey we implement a novel empirical strategy to test these relationships and find support for our demand-side explanation.%C Vereinigtes Königreich%G en%9 Zeitschriftenartikel%W GESIS - http://www.gesis.org%~ SSOAR - http://www.ssoar.info